eCom Teams Sweden (ECTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked by significant sales decline due to post-restructuring supply challenges, but operational efficiency gains led to profitability and positive operating cash flow.

• Footway+ platform exceeded growth targets, now serving 40 customers and expanding into the US market.

• Strategic decision made to separate e-commerce and platform operations for clearer focus and optimized growth.

Financial highlights

• Net revenue for Q2 2024 was SEK 114.9m, down 52% year-over-year due to inventory shortages.

• Gross margin (excluding restructuring reserves) improved to 55.8% from 50.9% in Q2 2023.

• EBITA for Q2 was SEK 0.5m, compared to SEK 1.6m in Q2 2023; net result was SEK -16.6m versus SEK -21.0m.

• Operating cash flow turned positive at SEK 4.1m, up from SEK -4.5m in Q2 2023.

• Total liquidity at quarter-end was SEK 6.0m, up from SEK 3.0m a year earlier.

Outlook and guidance

• Majority of suppliers expected to return to normal terms by autumn, supporting a return to growth.

• Footway+ aims to surpass 100 customers by year-end, raising its previous target.

• E-commerce market shows renewed growth, positioning the group for a quick rebound as supply normalizes.